Buy Exide Ind, DCW, IVRCL: Pankaj Jain

In CNBC-TV18's popular show Bull's Eye, Pankaj Jain of Suntech Wealthmax shares his trading strategies for the day.

I have a long call on Exide Industries. Yesterday the stock moved up sharply and closed above 200 day moving average (DMA). And technical of the stock has been strong, the momentum of the stock has been positive and apart from technical the company has raised prices of its products by about 3-4 percent.  Small battery units in China have been closed because of concerns relating to environment and pollution. They were supplying lot of material to India and because of closure to those units, organised players like Exide, Amaron Batteries have captured that area and they are benefiting from that development. Development Credit Bank (DCW) has run up sharply till September-October, went into a deep correction from levels closer to Rs 24-25 to levels as down as Rs 13. Thereafter we have been seeing decent pullback in the stock. The company is into manufacturing of caustic soda, polyvinyl chloride (PVC) and industrial chemicals. The results of the company have been pretty decent in the last two-three quarters and we expect that this positive performance should continue in coming quarters. I have a long call on IVRCL. Generally this stock is on wrong side of the trade. However, we think that in the last four-five trading sessions since it has been announced that stock would be taken off from the derivative segment, we have seen some kind of short covering, we have seen large number of short positions being closed and that is taking the stock on a positive basis and apart from that we are seeing some kind of positive momentum in most of these capital goods, infrastructure related stocks taking into consideration that there could be some kind of aggressive rate cut in May 3 meeting of Reserve Bank of India (RBI). I have a long call on Manappuram Finance and this long call is on basis of sharp pullback that has been seen in bullion market. In the last 24 hours both gold and silver have rallied sharply and positive sentiment effect of that should be seen in both Manappuram and Muthoot Finance. Taking that into consideration, taking the fact that the stock has crashed in a big way, we feel that some kind of positive rally should be seen in this stock.